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Data Centers in San Diego

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San Diego – Strategic West Coast & LATAM Gateway

San Diego serves as a key digital infrastructure hub for businesses requiring low-latency access to Southern California and cross-border connectivity into Mexico. The market offers a resilient alternative to Los Angeles, providing strong network performance crucial for uptime-sensitive applications in the biotech, defense, and technology sectors. Its strategic location supports edge computing and disaster recovery plans for the greater Southwest region.

San Diego: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent fiber connectivity to Los Angeles and cross-border routes into Mexico.
Direct Cloud On-Ramps0 – as of September 2025Nearest public cloud access is in Los Angeles; private network extensions are common.
Power Cost$0.19 - $0.23/kWh (est.)High renewable mix; costs reflect state-wide grid investments and policies.
Disaster RiskHigh (89.02 percentile) – as of September 2025Significant seismic and wildfire risks require robust facility engineering and DR planning.
Tax IncentivesYesIncludes general energy efficiency rebates and programs available at the state level.
Sales Tax7.25% (State-level) – as of September 2025Local taxes may increase the combined rate depending on the specific city/county.

Network & Connectivity Ecosystem

San Diego provides a solid foundation for network-dependent operations, acting as a secondary hub to the primary West Coast interconnection market in Los Angeles.

Carrier Density & Carrier Neutrality With over 15 network providers present as of September 2025, San Diego has a healthy mix of local, national, and international carriers. The market features several carrier-neutral data centers, allowing customers flexibility and cost control when building out their network infrastructure.

Direct Cloud On-Ramps There are no native public cloud on-ramps within San Diego data centers as of September 2025. Businesses access major cloud providers like AWS, Google Cloud, and Microsoft Azure through dedicated, private network connections to facilities in the Los Angeles region, which offers excellent performance and security.

Internet Exchange Points (IXPs) Public peering is limited within San Diego. Most network peering occurs privately between carriers or is routed through the extensive IXP ecosystem in Los Angeles, which is readily accessible via high-capacity fiber links.

Bare Metal Bare metal server options are available from providers operating within San Diego colocation facilities. This allows businesses to deploy dedicated hardware for performance-intensive workloads, with providers like phoenixNAP offering local solutions.

Power Analysis

Average Cost Of Power Industrial power rates are estimated between $0.19 and $0.23/kWh as of September 2025, in line with California's energy market. While higher than the national average, this cost is offset by a power grid with a high percentage of renewable energy sources, helping companies meet sustainability goals.

Power Grid Reliability The power grid serving San Diego's primary commercial and industrial areas is well-engineered. Data centers in the market offer extensive redundancy, including multi-megawatt generator farms and battery backup systems, to ensure continuous uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are strategically located to serve key business and research hubs like Sorrento Valley, University City, and Downtown San Diego. This proximity provides low-latency connectivity for the region's prominent biotechnology, defense, telecommunications, and research institutions.

Regional Market Reach San Diego is an effective hub for delivering services across Southern California and Arizona. Its position on the U.S.-Mexico border makes it a critical gateway for businesses targeting customers and partners in Tijuana and other parts of Latin America.

Tax Advantage For Data Centers California offers various tax incentives that can benefit data center operators and tenants, primarily through energy efficiency programs. State-wide rebates for deploying certified energy-efficient equipment can significantly reduce total cost of ownership over the life of the hardware.

Natural Disaster Risk

San Diego has a High natural disaster risk profile, with a FEMA National Risk Index score of 89.02 out of 100 as of September 2025. This score emphasizes the need for purpose-built facilities engineered to withstand regional hazards.

The primary risks for data center infrastructure in the region are:

  • Earthquake: The area is seismically active, requiring facilities with stringent building codes and seismic bracing.
  • Wildfire: Seasonal wildfires pose a threat to infrastructure and power lines in the surrounding areas.
  • Drought: Long-term water scarcity can impact cooling systems, making efficient water usage a critical operational factor.
  • Heat Wave: Extreme heat events can strain the power grid and place heavy demands on data center cooling infrastructure.
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